Grab to LTFRB: We are operating at a loss

App-based ride hailing service Grab Philippines on Wednesday contradicted the Land Transportation Franchising and Regulatory Board's (LTFRB) statement that it is earning millions of pesos, saying that it is "operating at a loss."

"Grab Philippines does not make a single peso from its 20% commission on rides. What we make in commissions is returned more than two-fold as incentives to drivers and promos to passengers. We are operating at a loss and have been from the start," the company said in a statement.

"All payments for TNVS (Transport Network Vehicle Services) applications go to legal fees and filing. But even for those that have been granted PAs (Provisional Authority) with our help, thousands have not paid the fees and we just covered these expenses for them," it added.

LTFRB earlier urged Transport Network Companies (TNCs) Grab and Uber to shoulder the financial obligations of drivers affected by the suspension order and not put the blame on the government.

"Do not throw this to us, TNCs. We bring it back to you. You have earned millions already. You pay for their bank amortizations, you pay for whatever damages," LTFRB Board Member Aileen A. Lizada said in a press conference in Quezon City.

Lizada said that Uber and Grab have been earning more than P60 million a month.

According to the LTFRB, Grab Philippines gets a 20-percent share from each booking made. The board estimates that each Grab unit makes at least P12,000 a month, net of expenses.

Grab said that it is still operating on investment money.

"Grab is still in investment mode. Meaning we are operating on investment money. Unlike what the LTFRB Board has pronounced, we are not raking in 150M a month, nor is this about greed as was discussed in media with the Chairman. At some point, Grab will begin to aim for profit, but that time is not now, and it will never take advantage of our drivers or passengers," Grab said.

"We have invested billions of pesos in the country to provide not only a startup business for our partners, but more importantly to give commuters a safe, reliable, and convenient mode of transportation," it added. — Marlly Rome C. Bondoc/BM, GMA News